North has united front on EU structural funding

Northern Ireland, under its new and fairly recent political dispensations, is about to begin a multi-faceted assault on the EU…

Northern Ireland, under its new and fairly recent political dispensations, is about to begin a multi-faceted assault on the EU's coffers. In the months ahead, Brussels and Strasbourg will learn what cross-community political action in Northern Ireland is primarily about - money, and lots of it.

The corridors of EU power in these two cities will be stormed by Mr David Trimble and Mr Seamus Mallon, the majority of the Assembly's 108 members, the North's three MEPs, the Rev Ian Paisley (DUP), Mr John Hume (SDLP) and Mr Jim Nicholson (UUP), not to mention Northern Ireland Office ministers and numerous civil servants.

Dr Paisley alleged in Strasbourg recently that the Republic, despite its much-vaunted "tiger" economy, was not paying its way in the EU. How could the Republic justify receiving "£6 million per day from Europe" yet not contribute more to the EU's central exchequer, he complained.

Dr Paisley, to the occasional annoyance of nationalist politicians in the North and South, exploits every opportunity to snipe at the abuses of the Irish Government, whether real or imagined - and in this case the European Commission office in Dublin insists that the DUP leader's allegations are imagined.

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Nonetheless, Dr Paisley will be on-side with his nationalist and unionist political colleagues as they sweet-talk Europe in the coming months over why Northern Ireland should continue to be designated as one of the most disadvantaged regions in the EU.

If successful, the North will again have Objective 1 top priority status conferred upon it, ensuring that it will receive most generous EU funding in the seven years from 2000 to 2006.

If unsuccessful, the top priority aid will be phased out.

There is some irony in Dr Paisley's complaints because for the previous two rounds of EU structural funding, Northern Ireland was awarded Objective 1 status, despite the fact that the North did not meet the criterion for such grant aid which was worth £1 billion sterling from 1994 to 1999.

It was, therefore, receiving money to which it was not entitled, whereas the European Commission office in Dublin insists every penny the Government receives is bona fide.

To qualify for top priority billing, the GDP (Gross Domestic Product) per capita of Northern Ireland should be under 75 per cent of the average GDP for EU countries. The North's GDP, according to the European Commission, is around 78 per cent of the average for the relevant reference period. A strict application of this measure would, therefore, mean the North losing its Objective 1 status. The figure for the Republic for the same period is 88 per cent.

In the two previous rounds of structural funding beginning in 1989, the North, the Commission said, was also above the 75 per cent figure. However, Europe, conscious of the social and economic impact of the Troubles, felt Objective 1 status could be beneficial. But now the EU is on an economy drive and is stating that in future Objective 1 can be allowed only where the criterion is "rigidly" met.

Which is why ranks of Northern Ireland MEPs, Assembly members, British ministers, civil servants and every local government councillor willing to take a stand will plead in Brussels and Strasbourg for more Euro largesse for the North.

Dr Paisley may talk about the South's begging bowl to Europe but he, above most other politicians, is aware of how important Europe is to the North's economy.

Between 1994 and next year, the North will receive some £1 billion sterling in structural funding. On top of that was the European Peace and Reconciliation Programme worth £340 million sterling, dating from the time of the first IRA ceasefire in 1994. The EU has also contributed £130 million sterling to the International Fund for Ireland over its 12-year existence.

Not bad pickings and before the EU takes a final decision some time next year on the next round of funding, Northern Ireland politicians will again be pleading their case.

There are some political concerns that Mr Tony Blair will be reluctant to make another special appeal for Northern Ireland because then the highlands and islands region of Scotland, which is due to lose Objective 1 status in the next funding programme, would also demand equal backing from the British government.

Mr Paul Murphy, effectively the North's finance minister, is clear, however, that the British government would argue trenchantly for further Objective 1 status for Northern Ireland. "There are very strong arguments for continued support and we will be negotiating hard to secure the best possible deal for Northern Ireland," his office said in a statement.

There was "a clear need for continued EU support for Northern Ireland, commensurate with its special circumstances, to help in adapting the region's economy to peace, both economically and socially", the statement added.

The North's three MEPs have wheedled successfully for Northern Ireland in the past and will co-operate to do so again in future months. This time they will have the back-up of the North's First and Deputy First Ministers, Mr Trimble and Mr Mallon.

And just in case anybody in the EU should be in the slightest doubt about why the North needs more aid, next week, with the European Commission footing the bill, all 108 Assembly members are invited to Brussels to listen and learn about Europe - and, more importantly, to put their case for continued Objective 1 funding.

Northern Ireland politicians, tested in a hard school, can be persuasive. The EU hierarchy will learn that shortly.